Change in foreign currency translation gains and losses on investments in foreign operations(2)

(350)

–

(350)

Change in gains and losses on hedges of investments in foreign operations(3)

79

–

79

Change in gains and losses on derivative instruments designated as cash flow hedges(4)

–

42

42

Reclassification to net income of gains and losses on derivative instruments designated as cash flow hedges pertaining to prior periods(5)

–

42

42

Balance at December 31, 2007

(361)

(12)

(373)

Change in foreign currency translation gains and losses on investments in foreign operations(2)

571

–

571

Change in gains and losses on hedges of investments in foreign operations(3)

(589)

–

(589)

Change in gains and losses on derivative instruments designated as cash flow hedges(4)

–

(60)

(60)

Reclassification to net income of gains and losses on derivative instruments designated as cash flow hedges pertaining to prior periods(5)

–

(23)

(23)

Change in gains and losses on available-for-sale financial instruments(6)

–

2

2

Balance at December 31, 2008

(379)

(93)

(472)

Change in foreign currency translation gains and losses on investments in foreign operations(2)

(471)

–

(471)

Change in gains and losses on hedges of investments in foreign operations(3)

258

–

258

Change in gains and losses on derivative instruments designated as cash flow hedges(4)

–

77

77

Reclassification to net income of gains and losses on derivative instruments designated as cash flow hedges pertaining to prior periods(5)(7)

–

(24)

(24)

Balance at December 31, 2009

(592)

(40)

(632)

(1)

Net of income tax recovery of $44 million in 2007.

(2)

Net of income tax expense of $92 million in 2009 (2008 — $104 million recovery; 2007 — $101 million expense).

(3)

Net of income tax expense of $124 million in 2009 (2008 — $303 million recovery; 2007 — $41 million expense).

(4)

Net of income tax expense of $7 million in 2009 (2008 — $41 million recovery; 2007 — $27 million expense).

(5)

Net of income tax expense of $9 million in 2009 (2008 — $19 million recovery; 2007 — $23 million expense).

(6)

Net of income tax expense of nil in 2008.

(7)

Gains related to cash flow hedges reported in Accumulated Other Comprehensive Income and expected to be reclassified to Net Income in 2010 are estimated to be $14 million ($12 million, net of tax). These estimates assume constant commodity prices, interest rates and foreign exchange rates over time, however, the amounts reclassified will vary based on the actual value of these factors at the date of settlement.

The accompanying notes to the consolidated financial statements are an integral part of these statements.